May 22 (Bloomberg) -- Congress has enacted a five-year, $289 billion farm bill that boosts food aid and largely maintains crop subsidies, rejecting President George W. Bush's arguments that it costs too much and distorts global commerce.

The bill, or at least most of it, became law today when the Senate overrode the first farm bill veto in 52 years by an 82-13 vote. The House approved the measure yesterday 316-108, with a majority of Republicans joining nearly all Democrats in support. Both totals exceeded the two-thirds majority needed to turn legislation into law without the president's signature.

While one section, or title, of the bill was mistakenly omitted when it was sent to the White House, Senate Agriculture Committee Chairman Tom Harkin said Congress shouldn't have to resubmit the original legislation to Bush for his signature, or another veto.

``I don't want there to be any doubt in anyone's mind,'' the Iowa Democrat said after the vote. ``Fourteen of the 15 titles of this bill are now the law of the land.''

Bush said the bill failed to reduce spending on subsidies to growers of corn, cotton and other crops and increased payments that the World Trade Organization says distort commerce.

He also objected to the creation of a new program to aid farmers struck by severe crop loss and to increases in crop price levels at which the government guarantees farmer income, possibly increasing subsidies should commodities fall from this year's record highs.

Veto Threats

The White House issued its first veto threat in July, shortly before the House of Representatives approved the first congressional version of the bill. The criticism continued through today's vote in the Senate.

The clerical mistake gives Congress ``one more chance to take a look and think about how much they're asking taxpayers to spend at a time of record farm income,'' White House spokeswoman Dana Perino told reporters.

The House today re-approved the original farm bill, including the omitted title that dealt with trade, in case the legislation needs to go back to the White House. The Senate may take a similar precautionary measure, Harkin said.

The farm bill is politically popular because of its support for farmers and food aid, especially in an election year. Assistance to poor families takes up about 74 percent of the spending authorized under the measure, according to House Agriculture Committee Chairman Collin Peterson. Crop subsidies account for about 16 percent, he said.

Nose Thumbing

Congress's refusal to accede to White House demands frustrated administration officials who wanted major reductions in payment limits for wealthy farmers and an overhaul of sugar subsidies. ``Congress has basically decided to thumb their noses at us,'' budget director Jim Nussle said yesterday.

Farm bills, passed about every five years, include guidelines for subsidy payments to farmers, conservation programs and food stamps for the poor.

This plan reduces a tax credit for blenders of ethanol into gasoline from 51 cents to 45 cents a gallon. A surge in demand for ethanol made from corn has contributed to record prices for the grain.

Reducing the tax credit was favored by companies such as Pilgrim's Pride Corp., the largest U.S. poultry producer, and Tyson Foods Inc., the world's biggest meatpacker, which say subsidies for crop-based fuels push up the price of corn used primarily to feed livestock. The bill also extends a 54-cent-a- gallon tariff on imports of biofuels until 2012, including sugar-based ethanol from Brazil.

Another provision lowers taxes for companies including Weyerhaeuser Co., North America's largest timber producer. The bill reauthorizes the Commodity Futures Trading Commission and ends the so-called ``Enron loophole'' by extending regulatory power over electronic trading on energy markets.

It also requires that beef, lamb, pork, chicken and goat meat, along with fruits and vegetables, peanuts and macadamia nuts, be labeled by country of origin.

Only one of Bush's 10 vetoes had been overridden before today. That was a water-resources bill in November.

To contact the reporter on this story: Alan Bjerga in Washington at abjerga@bloomberg.net.

Last Updated: May 22, 2008 18:27 EDT